Hi folks and welcome back to yet another five minute Friday here on

meaningful money it's great to have you with me let's talk about funds today

So listener Mark Mark with, Mark with a C, he's asked questions before. He's getting quite

greedy at asking these five minute Friday questions, but you know what, keep them coming, Mark.

Mark wants some clarification on the difference between

Oix and Investment Trusts. Oix, what's that? Little sort of mucky-faced

urchin from Victorian London. No it stands for open-ended investment company and it's just a kind of fund.

So let's clarify that further. Stick five minutes in the clock down here in the bottom left.

Say a quick thank you to my buddy's seven investment management for continuing to sponsor the show

and let's crack on. So as I say oaks and investment trusts are just types of fund.

You may also come across unit trusts which behave similarly to Oix.

Let's say you want to invest in shares. You think that shares is a good asset class in which to invest

your money. Most of us who do that invest using a fund. Why? Because it gives

us greater buying power and it gives us greater spread. Buying power, well in a fund you

are pooling your money with other investors in the fund. So combined

you have a much greater pot of money to invest with than you would if you were investing on

your own. And it gives us greater spread because we can use that larger amount

of money to buy more shares in more companies across more countries in the world

and having that

great spread reduces our risk.

So what's the difference between oakes, open investment,

open ended investment companies

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